IMF Urges Canada to Bring Back Debt Anchor and Keep Fiscal Policy Tight

Erik Hertzberg
Tue, June 20, 2023 


Debt Anchor means a rule that sets targets for the level of debt that the Government seeks to achieve as a percentage of Gross Domestic Product over the medium term and long term;

(Bloomberg) -- The International Monetary Fund says Canada’s government should consider bringing back a debt anchor.

The IMF has recommended Canada adopt more binding fiscal constraints for a third year in a row, saying the introduction of a federal debt consolidation plan would help guide market expectations while bolstering credibility and accountability.

“The government’s commitment to medium-term debt reduction provides general guidance but leaves flexibility in the pace of consolidation,” the IMF said in its Canadian mission’s annual statement, which advises the country to adopt a “quantitative fiscal framework,” including a possible debt anchor to guide policy choices.

A declining debt-to-GDP ratio, rather than a firm constraint, has been the preferred barometer for Finance Minister Chrystia Freeland’s spending decisions. In her most recent budget, the ratio was forecast to rise to 43.5% this year before declining to 39.9% by 2028. Before the pandemic, the figure was about 30%.

Opting for a floating but declining target for debt as a percentage of the economy has given Prime Minister Justin Trudeau’s government leeway when it comes to red ink. Coupled with windfall revenues, the target has kept the door open for historically elevated expenditures and the addition of billions in new spending without a nagging requirement to lower debt burdens.

Canada’s federal debt remains “substantially” above pre-pandemic levels, the IMF noted, though they acknowledged the country has a better fiscal position than its peer countries and praised a “strong track record of fiscal discipline.”

“I welcome the IMF’s findings, which have today reaffirmed the resilience of the Canadian economy and our government’s record of fiscal responsibility,” Freeland said in a news release Tuesday.

The IMF also said Canada should keep fiscal policy tight to help to rein in inflationary pressures, an idea increasingly supported by economists.

Policymakers at the Bank of Canada were lauded for their recent increase to the key overnight rate by another 25 basis points following two meetings of pausing. The IMF also reiterated that officials should consider publishing their forecast for the country’s policy rate.


The country is expected to run a C$40.1 billion ($30.3 billion) deficit in the current fiscal year, and a balanced budget isn’t in the forecast.

CRIMINAL CAPITALI$M

Credit Suisse’s Demise Blamed in Bondholder Suit on NY Bankers

Joel Rosenblatt
Wed, June 21, 2023


(Bloomberg) -- A group of Credit Suisse Group AG’s European bondholders who were part of the $17 billion wipe-out in the bank’s demise sued its former executives, pointing to a “broken culture” and a series of scandals they trace to its New York-based investment banking operation.

Bondholders based in Paris, Luxembourg, and St. Peter Port, Guernsey argue that self-serving executives chased short-term returns and bonuses from overly risky deals, resorting to unethical and illegal practices to acquire and keep high-revenue customers.

The suit filed late Tuesday in Brooklyn, New York names several Americans as defendants, including Brady W. Dougan, who served as chief executive officer from 2007 to 2015; Eric Varvel, who served as head of Credit Suisse’s investment banking division for several years; investment banking head James L. Amine; and Timothy P. O’Hara, who co-headed investment banking before becoming head of global markets. The class-action complaint was brought on behalf of holders of Credit Suisse Additional Tier 1 Capital, or AT1, bonds from Jan. 12 to March 19, 2023.

Citing a 2021 report commissioned by Credit Suisse and published by law firm Paul, Weiss, Rifkind, Wharton & Garrison, the bondholders say the bank “was fatally plagued by incompetence and grift, and the senior leadership was incapable or unwilling to overhaul the corrupt foundation.” They claim the corruption started in New York.

“While Credit Suisse began as a conservative Swiss private bank, the vast majority of the people who were responsible for its demise were not staid Swiss bankers, but, rather, sharp-elbowed New York investment bankers,” according to the complaint.

Read More: How Scandal and Mistrust Ended Credit Suisse’s 166-Year Run

The lawsuit pins much of the blame for a culture that “valued short-term gain over long-term trust” on Dougan and fellow alumni of Credit Suisse First Boston who were his proteges when he took over as CEO.

Europeans are also named as defendants, including former CEO Tidjane Thiam, who according to the complaint lives in New York but is a French and Ivorian citizen. He replaced Dougan in 2015 and remained CEO until 2020. Ultimately Thiam failed to “roll back the influence of the US-focused investment banking” and overcome the bank’s culture, according to the complaint.

UBS Group AG agreed to take over Credit Suisse in an emergency government-backed deal in March, after the bank was hit by mounting client withdrawals.

In the six weeks after the rescue was rushed through, at least 120 claims were filed against the Swiss banking watchdog’s decision to wipe out the high-risk AT1 bonds as part of the deal.

A UBS spokeswoman didn’t immediately respond to an email outside regular business hours seeking comment on the suit. Representatives of Exos Financial, which Dougan founded in 2015, also didn’t immediately respond outside regular business hours to an email seeking comment.

The case is Star Colbert v. Dougan, 23-cv-04582, US District Court, Eastern District of New York (Brooklyn).

UBS to Face Penalties Over Credit Suisse’s Archegos Fiasco

Myriam Balezou and Patrick Winters
Tue, June 20, 2023 



(Bloomberg) -- UBS Group AG faces hundreds of millions of dollars in regulatory fines over Credit Suisse Group AG’s dealings with Archegos Capital, as the Swiss bank inherits its former rival’s entire litigation portfolio, according to a person familiar with the matter.

The US Federal Reserve’s fine over Archegos may be as high as $300 million, while the UK’s Prudential Regulation Authority could impose a penalty of up to £100 million ($128 million), the person said. Switzerland’s financial regulator doesn’t have the authority to impose fines.

UBS’s acquisition of its stricken rival closed earlier this month, handing Chief Executive Officer Sergio Ermotti a potential windfall gain this quarter in the tens of billions of dollars after the government-brokered rescue. At the same time, UBS has previously guided that legal liabilities related to Credit Suisse could run to as much as $4 billion over 12 months, and asset mark-downs could come in at some $13 billion.

Unlike other banks working with the family office that managed Bill Hwang’s fortune, Credit Suisse was slow to unwind its positions and ended up with a $5.5 billion losses related to that business in 2021. UBS suffered a much smaller loss.

UBS erased earlier gains to trade down 1.4% at 18.25 Swiss francs ($20.343) as of 11:12 a.m. in Zurich. The shares have gained 7.5% this year.

The bank had asked Finma, the Fed and the PRA to publish their findings and announce any penalties jointly at the end of next month, according to the Financial Times, which first reported that UBS would face some penalties.

UBS declined to comment. Finma wasn’t immediately available for comment. PRA didn’t respond to a request for comment.

UBS has inherited a long list of unresolved cases following the completion of its emergency takeover of Credit Suisse. They span a criminal conviction for facilitating a Bulgarian cocaine trafficker’s money laundering to a half-billion dollar settlement in a bribery scandal related to a tuna fishing fleet in Mozambique.


What Bloomberg Intelligence Says

UBS’s $4 billion in additional legal provisions, when it completed its purchase of Credit Suisse on June 12, may cover much, if not all, of the potential fines related to the latter’s Archegos issues. A Financial Times June 19 report is consistent with our thesis that such regulatory penalties would be less than $1 billion.

Alison Williams, Bloomberg Intelligence

Ermotti has signaled that Credit Suisse’s investment banking unit, which was at the center of the Archegos debacle, is in for a “massive downsizing” as part of the integration into UBS.

--With assistance from Hugo Miller and William Shaw.

China to Be World’s Top Wheat Buyer With Australia Key Supplier

Bloomberg News
Tue, June 20, 2023 


(Bloomberg) -- Add wheat to the extensive list of commodities markets dominated by Chinese buyers.

Already the world’s top importer of corn and soybeans, the nation is now poised to overtake Egypt and Turkey as the biggest buyer of wheat in the year through June, Chinese and US official data show. Purchases exceeded 12 million tons in the first 11 months of the marketing year, which runs through June. More than half of those cargoes were supplied by Australia.

Imports of the food staple accelerated above 1 million tons a month from October, before peaking at a record of 1.68 million tons in April. The US Department of Agriculture is forecasting another 12 million tons of Chinese imports in 2023-2024 after damage to the latest harvest left a lot of the crop suitable only for animal feed.

Heavy rains in Henan, China’s biggest growing region, have affected quality and pushed up prices of the higher-protein grain used to make bread and noodles. That should benefit wheat farmers and shippers around the world, while potentially hurting demand for other feed ingredients like corn and soybeans as more wheat gets swapped into livestock rations.

“Imports have been quite profitable and lots of cargoes were booked,” said Zhang Zhidong, senior analyst with Guolian Futures Co. “Domestic grains are expensive and stockpiles are falling, so there is the demand.”

Purchases should stay elevated if prices remain favorable and buyers need to replenish their reserves, said Rosa Wang, an analyst with consultancy Shanghai JC Intelligence Co.

Canadian Consumers Keep on Spending Despite Rate Hikes

Randy Thanthong-Knight
Wed, June 21, 2023 



(Bloomberg) -- Canadian consumers showed little sign of slowing down, with stronger-than-expected spending at the beginning of the second quarter seen holding firm in May.

Receipts for retailers rose 0.5% last month, according to an advance estimate from Statistics Canada. That followed a 1.1% jump a month earlier, which beat the 0.4% median estimate from economists in a Bloomberg survey. In volume terms, retail sales increased 0.3% in April.

Core retail sales, which exclude gasoline stations and car dealers, increased 1.5%, the fifth consecutive monthly increase. The gain was led by higher sales at general merchandise stores and food and beverage retailers.

The data suggest Canadian consumers were still dining out, traveling and spending on major purchases such as cars. Their resilience defied expectations that the country’s deeply indebted households would respond more quickly and negatively to an aggressive hike campaign of interest-rate hikes by the Bank of Canada.

Strong economic momentum since the central bank declared a pause in January prompted policymakers to raise the benchmark overnight rate again to 4.75% earlier this month. The move upended markets, and swaps traders are ramping up bets on another hike at the bank’s next meeting on July 12.

“Coming off a strong first quarter of consumer spending, a second consecutive monthly move higher is not what the Bank of Canada will be looking for as it hopes to slow domestic demand,” Randall Bartlett, senior director of Canadian economics at Desjardins Securities, said in a report to investors.

Regionally, sales rose in eight provinces in April, with Ontario seeing the largest increase of 1.3%, led by higher vehicle sales.

The statistics agency didn’t provide details on the May estimate, which was based on responses from 40.6% of companies surveyed.

--With assistance from Erik Hertzberg.

(Updates with economist reaction.)

Most Read from Bloomberg Businessweek

Singapore has pledged billions to fight climate change. Experts say it's not enough

Story by Nyshka Chandran • CNBC - Yesterday 

Singapore's government has committed public funds to help the country deal with the detrimental impact of climate change, which include droughts, floods and water scarcity.

But experts say diverse sources of capital are also needed from private banks, insurance players and financial markets.

Corporate green bonds, catastrophe bonds and blended finance projects are all ways to boost private sector involvement in adaptation finance.


Singapore's government has pledged $74.15 billion over the next century to safeguard the city against rising temperatures and floodwaters.© Provided by CNBC

Singapore, a tiny city-state with an import-dependent economy, is especially vulnerable to rising sea levels, heat waves and other adverse effects of climate change.

That's why the government has pledged 100 billion Singapore dollars ($74.15 billion) over the next century to help the country withstand and minimize damages from greenhouse gas emissions. This is an adaptive approach that differs from mitigative measures such as carbon pricing and renewables.

Experts warn, however, that public funds alone aren't enough for Singapore's infrastructure and economy to adjust to higher temperatures. Private sources of capital from banks, insurance players and financial markets are also needed, in addition to blended finance projects involving public-private partnerships, they say.

The problem isn't unique to Singapore.

Around the globe, financing for climate adaptation has traditionally lagged behind mitigation investments that are focused on slowing or stopping the rise in fossil fuel emissions.

That's primarily due to widespread perception that adaptation and resilience projects don't really generate revenue, according to Xinying Tok, head of Southeast Asia at environmental consultancy Carbon Trust.

The lack of understanding about adaptation and resilience leads to mispricing across financial solutions, whether it's in investment, credit or insurance, she continued.
Singapore's climate challenges

In 2019, Singapore prime minister Lee Hsien Loong said climate change was a matter of "life and death" for the city-state.

Sea levels are projected to rise by 1 meter by 2100 but there's a risk they could go up to 4 or 5 meters higher than current levels depending on storm surges, land subsidence and other factors, according to authorities.

That kind of increase could "potentially flood one-third of Singapore," Grace Fu, the minister for sustainability and the environment, has said.

Climate adaptation projects include constructing resilient water systems to manage scarcity during droughts and building barriers like sea walls to protect against rising sea levels, explained Emirhan Ilhan, assistant professor at the National University of Singapore Business School and research affiliate at the Sustainable and Green Finance Institute.

As such ventures improve existing infrastructure, they are often financed with public sources but "collaboration with the private sector is also necessary since no government can shoulder the costs of these projects in its entirety," he said.


"Although a sense of urgency to tackle adaptation has been widely communicated from the top down in the City State, it has not yet clearly articulated a role for the private sector and the market in adaptation," said researchers of a report from the Singapore Green Finance Centre (SGFC) in February.

An initiative of London's Imperial College and Singapore Management University, SGFC was launched in 2020 to advance climate financing solutions.
Mobilizing private capital

1. Catastrophe bonds

Catastrophe bonds — designed to raise money for companies in the insurance industry in the event of a natural disaster — are a widely touted mechanism for climate adaptation.

The Monetary Authority of Singapore, the country's financial regulator and de facto central bank, has been supporting the sector through its Insurance Linked Securities Grant Scheme, which helps fund upfront costs to issue these debt instruments.

The program produced 23 catastrophe bonds as of late 2022 and has been extended until the end of 2025.

2. Green bonds

Green bonds are another option but so far, the space is dominated by public-sector activity and mostly focuses on mitigating climate change through energy efficiency, clean transportation and sustainable water management.

The corporate green bond market, which lags behind government issuances, also leans heavily toward climate mitigation measures. In 2020, Vena Energy became the first Singapore-based company to issue green bonds in U.S. dollars with a $325 million five-year green bond aimed at refinancing existing corporate loans for green projects.



De-risking adaptation opportunities© Provided by CNBC

When the risk-return trade-off isn't perceived as sufficient for private investors, Singapore must create the right incentives through subsidies or by reducing burdens like taxes, or regulation, said Ilhan.

"The good news is that Singapore is very good at creating predictable and enforceable regulation —therefore, there is reason to be optimistic," he said.
'Blended financing'

Blended finance, or public-private partnerships, will be critical for infrastructure projects like climate-proofing airports, coastal protection plans and developing local food production.

In a report published last month, the World Resources Institute (WRI) said guarantees, co-financing or other methods of risk reduction from public players and development finance institutions can help attract private capital.

Another way to increase blended financing is to introduce more risk-tolerant capital structures, the report said, citing Lightsmith Climate Resilience as an example of a private equity fund that invests in solutions to the effects of climate change.

"The fund uses donor capital to create a risk-absorbing junior layer, which carries a higher potential for loss and helps reduce the level of risk for subsequent investors" — that enables Lightsmith to attract an estimated $3.30 of direct commercial investment for every $1 contributed by public financial institutions, the WRI report explained.

Going forward, Tok from Carbon Trust recommends greater market coordination.

Since pricing physical risks is hard, market players in Singapore could benefit from "shared modelling support that allows the potential costs to a range of economic activities to be compared to adaptation costs," she concluded.

Transgrid to spend $11 billion to prepare Australian state for 100% renewables

Story by By Lewis Jackson • Yesterday


Power lines and storm clouds can be seen above the Bayswater coal-powered thermal power station located near the central New South Wales town of Muswellbrook

© Thomson Reuters

By Lewis Jackson

SYDNEY (Reuters) - Australia's most populous state will be ready for 100% renewable energy within a decade under a A$16.5 billion ($11.20 billion) infrastructure investment plan announced by a major grid operator on Wednesday.

Transgrid, privatised in 2015, will invest in batteries and other energy storage, as well as 2,500 kilometers (1,553.4 miles) of new transmission lines across an area larger than Texas for "secure operation" of the grid at up to 100% instantaneous renewables.

The company owns and operates over 13,000 km of transmission lines across New South Wales (NSW) state and the Australian Capital Territory.

"There will be no transition without transmission," Chief Executive Brett Redman said in a statement.

"With over 80% of coal-fired capacity in NSW expected to retire and 28 gigawatt of new renewable and storage capacity coming online in the next 10 years, we must urgently accelerate the investment in all areas of the energy transition."

Wednesday's plan highlights the scale of investment required to reach the Labor government's pledge to cut carbon emissions by 43% from 2005 levels by 2030 and how a sizable chunk of the spending falls outside building new wind, solar and hydro projects.

In a decade, 80% of today's coal-fired capacity, concentrated in a score of large plants, will close and billions will be needed to knit together a vast network of new energy to replace it. These will include hundreds of wind and solar projects and tens of millions of rooftop solar panels spread across the world's sixth-largest country.

The bulk of the funds, A$14 billion, will be spent on transmission lines to connect new clean energy projects to customers. Roughly A$2.2 billion will be spent on energy storage to secure the grid as coal plants close, including 10GW of batteries.

A final A$300 million will be spent on new staff and technology to operate the upgraded grid.

Reuters has reached out to Transgrid on how it would finance the investment project.

While work has started on EnergyConnect, a 900km transmission line to connect grids across three states, most of the announced plan has not started.

($1 = 1.4732 Australian dollars)

(Reporting by Lewis Jackson; Editing by Jacqueline Wong)

At $10,000 per year, the cost of childcare is 'a crisis,' and it's set to get worse in September

Story by insider@insider.com (Sabina Wex) • Yesterday 

The American Rescue Plan Act included funding for childcare that will end in September.

 Halfpoint Images/Getty© Halfpoint Images/Getty

It costs an average of over $10,000 a year for childcare in the US, causing many women to leave the workforce.

Many states have childcare resources, but the quality of those resources varies significantly.

The American Rescue Plan included childcare assistance, but that's set to end in September.

When Toi Smith's four boys were younger, she worked in corporate HR. Smith was a single mom and wasn't receiving child support from her kids' dads, so she qualified for food assistance and welfare. But even with her salary and subsidies, Smith couldn't afford childcare.

Smith eventually found a somewhat affordable in-home daycare on Craigslist that cost $1,300 a month. That was the same amount as her rent.

"It's a vicious cycle," Smith says. "You have to go to work. In order to go to work, you have to put your kids in daycare."

The cost of childcare is 'a crisis'

Smith isn't alone in finding it almost impossible to pay for childcare. Childcare prices often rival rent prices, averaging $10,853 a year, according to a 2022 report from childcare advocacy organization Child Care Aware of America.

The US Census Bureau reported that the median American household income is $70,784. If that average household has just one child, the $10,853 annual childcare costs eat up 15% of the family's income.

"Nobody can afford this. It's not you," Child Care Aware of America interim CEO Michelle McCready says. "It's everywhere. It's a crisis. It affects every income bracket."

Jess Carson discovered that many families use credit cards, go into debt, and send their kids to unlicensed daycare providers because they can't afford formal childcare. She learned this during her research for the 2022 Preschool Development Grant's New Hampshire Family Needs Assessment Survey.

"It's a series of trade-offs for families," says Carson, who is also the director of the Center for Social Policy in Practice at the University of New Hampshire's Carsey School of Public Policy.

States can sometimes help parents pay for childcare

Individual states determine much of the childcare assistance available. But each state's subsidies differ dramatically.

Child Care Aware of America offers parents a database to find local organizations offering childcare resources. These organizations can inform parents about subsidies and scholarships available in their area and for their income.

Carson's research illustrates how childcare differs from state to state by comparing subsidies available in Vermont and New Hampshire. Vermont offers higher income eligibility and larger amounts for childcare subsidies than New Hampshire. Because of this, Vermont families can save up to $20,000 more on childcare costs than New Hampshire families.

"These differences emerge in what a family could pay out of pocket, just living five miles apart on either side of the border," Carson says.

Though Carson and McCready are happy to see the states making childcare more affordable, they both mention the need for the federal government to make it a priority. During the pandemic, the Biden administration offered childcare assistance for both parents and childcare providers, but this money is set to run out in September. If this happens, McCready says it could lead to an even worse childcare crisis.

Our mindset around childcare needs to change

Carson, McCready, and Smith all say that a mindset shift is required in the country's attitude toward care. They all want to see citizens and politicians recognize that childcare is a public good.

"This is not a nice-to-have," McCready says. "It's essential for a strong, thriving workforce."

According to economist James Heckman, the US receives a 7% to 10% return on investment when it invests in early childhood education. When parents can't afford childcare, the country loses out on these huge gains.

Lack of childcare also leads to many women leaving the workforce. "Black single motherhood is the thing that politicized and radicalized me," says Smith, who writes about her experiences on her website. "My motherhood is deeply woven into how I think and how I work because it's all care work. There's no way that I can separate it."

Smith wants more people to be open about their struggles around parenthood, money, and work. She wants parents to feel comfortable openly saying that they're overwhelmed and can't afford childcare. She also wants friends, neighbors, and relatives to offer to help with kids when they can. She believes that this openness and cooperation could help offset some of the burden of paying for childcare.

"We think we have individual problems when actually there are societal problems," Smith says. She says it's important to identify others dealing with the same problems and ask how you can support each other. "What we start to do is crack at these systems a little bit."

4 families in Elliot Lake, Ont., demand radioactive mining waste be removed from their properties

Story by Kate Rutherford • CBC - Yesterday 

Jennifer Carling is concerned about the potential repercussions of living in a decades-old subdivision of Elliot Lake, Ont., that's now under the microscope.

Carling is one of four homeowners in the former northern Ontario uranium mining town who want the federal Canadian Nuclear Safety Commission and mining company BHP to address high levels of radiation on their properties.

According to the families and their legal representatives, their homes are on a site that held mine waste and it was never properly cleaned up.

Uranium mining operations in Elliot Lake ended in 1996, and work to decommission and remediate those mines was completed in 2002. BHP acquired the historical mines sites from Rio Algom Limited in 2000.

"I want the mine waste removed from the property and fresh fill put in place," Carling told CBC News.

"And I'm not doing this for me, I'm already 74."

In addition to her concern about possible mine waste outside her home, Carling said she's worried about radon inside her house.

What is radon?

Radon is a radioactive gas that naturally occurs when uranium in rock breaks down. It's the second leading cause of lung cancer in Canada, after cigarettes, according to Health Canada. It's also invisible and odourless, and can only be detected with testing.

While Carling has taken measures, including having a special radon exhaust fan system that helps vent gases out of her home, she's worried about it failing and resulting in higher-than-acceptable levels of the gas.



Kathleen Panton is another of the homeowners in Elliot Lake who's concerned about the soil in land once used for uranium mining. (Canadian Environmental Law Association)

© Provided by cbc.ca

Health Canada says radon levels of 200 becquerels per cubic metre or more are considered unsafe.

The Canadian Environmental Law Association (CLEA) and Blaise Law, who are representing the four families, hired experts to do an assessment. They found the properties around their homes have unsafe levels of gamma radiation, according to the CLEA.

"What our experts found is that the hotspots are the places where they had higher-than-guideline gamma radiation, in the places where there's historical documentation that the mine waste was placed," said Jacqueline Wilson, one of the lawyers for the homeowners.

Carling said she's also concerned about the potential "cancer-causing" properties of radon.

"I couldn't, you know, in conscience sell this house to a family with small children, having them playing outside with the gamma radiation."

A history of uranium mining

BHP said in a statement that three of the four homes with high levels of radiation were used as company housing when the mines were still in operation.

The homes were part of a remediation program and Rio Algom sold them to the mine workers in the 1970s.

"After receiving the letter from CELA, we have begun a detailed review to better understand the complex history of these properties," BHP spokesperson Megan Hjulfors said in the company's statement.

"This review is currently ongoing. We are committed to understanding the history of these properties, what has happened and remediate, as appropriate."



NDP MP Carol Hughes spoke in the House of Commons on behalf of the four Elliot Lake families during question period recently, noting, 'This waste from closed uranium mines was widely used as fill for construction in the 1960s.' "

 (The Canadian Press)© Provided by cbc.ca

Carol Hughes, NDP MP for Algoma-Manitoulin-Kapuskasing who represents Elliot Lake, raised the issue in the House of Commons on June 15.

"This waste from closed uranium mines was widely used as fill for construction in the 1960s," she said.

"Without knowing, these families have been exposed to radiation above allowable limits, caused by mine wastes buried in their yards and driveways."

The CELA said the federal government has refused to respond in a meaningful way so far.

In an email to CBC News, the Canadian Nuclear Safety Commission, the country's nuclear regulator, said it does not regulate historic mine waste at non-licensed sites or radon in homes.

The commission said questions on historic waste should be directed to Natural Resources Canada.

In an email, Natural Resources Canada told CBC News that tailings and waste produced by uranium mines in Elliot Lake were all safely stored in tailings management facilities in the area.

But the email went on to say "the government is aware that waste rock was used on some properties in the Elliot Lake area prior to 1976 when uranium mining was regulated solely by the provincial government."

Natural Resources Canada added that mining companies are responsible for managing their waste, and the government of Canada only takes over if the producer no longer exists or if it was a Crown corporation.

For Elliot Lake, BHP, which now owns Rio Algom, would be responsible if a cleanup is necessary.

As for radon in the four homes, Natural Resources Canada said prior testing by the Federal-Provincial Task Force on Radioactivity determined the gas was naturally occurring, and could not be removed by excavating the nearby soil and putting in clean fill.

"There is no permanent solution for these properties other than maintaining radon abatement systems," the email said.

Plan to discharge water into Hudson River from closed nuclear plant sparks uproar





Sitting along the Hudson River near New York City, the Indian Point nuclear plant repeatedly attracted controversy during the decades it generated electricity.

Two years after its shutdown, it still is.

The latest flashpoint revolves around plans to release 1.3 million gallons of water with traces of radioactive tritium into the river as part of the plant's decommissioning.

Supporters of the planned releases say they are just like those made when Indian Point was producing power and that the concentration of tritium has been far below federal standards.

But opponents along the river question the health and safety claims. They say the releases of radioactive water could be a step back for a once notoriously polluted river that is now a popular summer attraction for sailors, kayakers and swimmers.

Communities along the river have already passed resolutions opposing the discharges, and an online petition has gathered more than 440,000 signatures. On Tuesday, a bill sponsored by two Hudson Valley Democrats that would ban radiological discharges into the river was approved by state Assembly.

“It leaves a bad taste in your mouth ... the idea that we would be polluting our beautiful Hudson River with waste when we’ve spent so many years trying to clean it up. This shouldn’t be a dumping ground," Assembly member Dana Levenberg said at a state Capitol rally for her bill before the debate.

The bill, approved by the state Senate earlier this month, is opposed by some labor officials, who say it could interrupt the decommissioning and cause layoffs.

The bill will be sent to Gov. Kathy Hochul, who has not said whether she supports the measure.

Indian Point Energy Center generated about a quarter of the electricity used in New York City and suburban Westchester County until its two reactors were shut down in 2020 and 2021.

Critics had called for its closure for years, claiming a major nuclear accident or a terror strike on the plant — just 25 miles (40 kilometers) from the city — could be devastating. Those critics also said the plant had a spotty environmental and safety record.

Indian Point was fully shut down in 2021 and was transferred to Holtec International for decommissioning, which is projected to take 12 years and cost $2.3 billion.

Holtec is allowed to discharge water from spent fuel pools and other parts of the plant into the river as part of the decommissioning. Some water contains tritium, which occurs naturally in the environment and is a common byproduct of nuclear plant operations.

Holtec currently plans to begin a release into the river as early as September.

Similar releases are made by other nuclear plants, as well as hospitals and wastewater treatment facilities, Holtec spokesman Patrick O’Brien said. The Hudson releases have been safe and have had “very, very low” levels of tritium, he said.

“Any headline that’s going to say ‘radioactive’ is going to scare people. And I understand that. It takes a lot of education,” O'Brien said.

But critics say the release of any radioactive material into the Hudson should be avoided if there are viable alternatives. Tracy Brown, president of the environmental group Riverkeeper, said storing the water on-site for 12 years or so would give Holtec time to explore long-term options to separate the tritium.

“We’re pretty confident that something better is going to come along,” she said.

O'Brien said river discharges remain the “preferred option” for Holtec.

The bill approved by the Legislature would force another solution by making it unlawful to discharge any radiological substance into the Hudson River in connection to nuclear plant decommissioning. Sponsors say the discharge of nuclear waste into the river poses a substantial risk to local real estate values and economic development.

“Even though this bill doesn’t discuss environmental or health impacts, the public perception is tied to what they believe ... could actually happen to them if they were to swim, boat, paddle or live on and dip their toes into the Hudson River,” Levenberg said during the debate.

Republican Assembly member Andy Goodell noted the long history of releases from the plant.

“It didn’t create a problem then,” he said. “It’s not going to create a problem now.”

O'Brien said a ban on river discharges could lead to layoffs among the hundreds of decommissioning workers because it would require work to be re-sequenced. The argument has been amplified by some labor groups, with the North Atlantic States Regional Council of Carpenters calling the bill “job-killing legislation.”

Proponents of the bill say the layoff threats are a scare tactic.

__

Maysoon Khan contributed. Khan is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

Michael Hill, The Associated Press

Snow what? Wild June weather wallops western Alberta, tourists rescued in Jasper

Story by Karen Bartko • Yesterday

Snow and rain fell in Jasper National Park, washing out part of Miette Road and causing a tour bus to get stuck on Maligne Road on Monday, June 19, 2023.© Credit: Parks Canada

On a June day when much of the province was dealing with a deluge of rain, far western Alberta woke up to a precipitation of a different nature.

Wet, heavy snow — and lots of it — fell Monday in Jasper, along Highway 93 south to Banff, and on Highway 40 north of the Yellowhead near Grande Cache.

The snow also caused a temporary closure of the road to Miette Hot Springs because part of it washed out.

In an update given to Global News at around 10 p.m. Tuesday, Parks Canada said that 62 people had left safely from the Miette Hot Springs and that all remaining guests and staff will be leaving on Wednesday morning.

Parks Canada said it expects all guests and staff to drive past the washout on Miette Road by 10 a.m. Wednesday morning.

It said there were some delays in clearing the road once crews were able to get past the washout, but guests had single-lane access down the mountain as of 10 p.m. Tuesday.

Parks Canada will be assessing road stability with the help of engineers and will provide an update on the reopening of Miette Road at a later date.

"We had a developing low-pressure system on Sunday over the central portion of the province," said Sara Hoffman, a meteorologist with Environment and Climate Change Canada.

"That was associated with a lot of cold air aloft flooding into the province, helping create these quite heavy showers over west-central portions of the province in Yellowhead County, including Jasper and especially the Grande Cache area, and the Hinton area all the way to the B.C. border."

In Jasper National Park, both rain and snow fell Monday.

Up at Marmot Basin Ski Resort, the white stuff coated the ground and left a nearly foot-thick layer on patio furniture at the lower chalet.

Snow atop mountains is not unexpected at any time of year, but it falling to the valley below during the summer months is another story.

Parks Canada said more than 100 mm of rain and 55 cm of snow were recorded in some places Monday.

If you haven't heard from a friend or family member travelling in Jasper, Parks Canada is asking people to reach out to them.

Video: Alberta tourists stranded by snowfall in June

"If you're aware of a backcountry camper who hasn't checked in or arrived at their destination as anticipated, please call Parks Canada Dispatch at 780-852-6155. If you are aware of a motorist who hasn't reached their destination, call the RCMP at 780-852-4848," a Tuesday bulletin said.

Parks Canada said it brought approximately 60 people to safety on Monday, including hikers on the Skyline trail, paddlers on Maligne Lake and two tour buses full of passengers from Maligne Road, and in a Tuesday update said staff continue to respond to stranded travellers.

Two tour buses tried to drive up Maligne Lake Road and became stuck in snow more than foot deep.

The buses got stuck somewhere near Medicine Lake, so Parks Canada sent a plough up to clear a path so the roughly 40 passengers could be transferred back down.

"They'll have stories to tell when they get home, that's for sure," said Dave Argument, a resource conservation manager with Parks Canada.

"It sounds like one bus was a load of primarily German tourists.

"It'd be a bit of an adventure for them — they didn't get to see Maligne Lake but had a mountain adventure nonetheless."

The Parks Canada plough then went farther up — or at least tried to, before it got stuck itself.

Parks Canada said fortunately, no significant injuries have been reported, although the local newspaper said two groups campers — one at Tekarra Campground and the other at Fisherman's Bay — required help after their tents collapsed due to the wet, heavy snow overnight and they began to suffer from the effects of the cold.

"This is just a case in point for why it's important to make sure you're carrying emergency communications equipment. That's key," Argument told the Jasper Fitzhugh.

On Tuesday, Parks Canada said Maligne Road will remain closed for at least 48 to 72 hours to allow for any avalanches triggered by the storm to come down and to complete debris removal.

The snow also delayed the opening of Cavell Road and caused the temporary closure of the road to Miette Hot Springs because part of it washed out.

Parks Canada said it expects to have the Miette Road open for single-lane traffic for visitors to leave the hot springs area by 7 p.m. Tuesday.

The government agency said it will issue an update on the full reopening of the road at a later date.

The unseasonal heavy snow downed several trees throughout the national park and the municipality of Jasper itself.

Parks Canada sent out chainsaw crews to remove the deadfall from roads and trails. The snow in Jasper then turned into rain around noon.

On Monday, a big snowfall also hit Highway 40 north of Hinton near Grande Cache. Video sent to Global News showed passenger vehicles and semis spinning out.

Video: Wet, heavy snow snarls traffic on Highway 40 near Grande Cache, Alta.

Snowfall warnings that were issued Monday remained in effect Tuesday for Highway 93 from Jasper to Saskatchewan River Crossing and then on to Lake Louise as well.

Environment Canada said a long period of heavy, wet snow continues with total amounts of 20 to 40 cm, with the highest amounts over higher elevations.

Snow levels currently near valley bottom were expected to rise Tuesday morning. The snow will taper off by Tuesday night, the national weather agency said.

Visibility may be suddenly reduced at times and people thinking about driving the Icefields Parkway were told to consider postponing non-essential travel until conditions improve.

— with files from Scott Hayes, Jasper Fitzhugh, Destiny Meilleur

https://plawiuk.blogspot.com/2023/06/heavy-june-snow-wallops-alberta_20.html

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